The cost of a business license in Dubai Free Zone represents a deciding factor for investors considering establishing or expanding their business in this thriving global city. The Freedom Zones in Dubai are characterized by a distinct investment environment that offers a set of privileges and competitive advantages that attract companies and investors from around the world. But before investors begin to take advantage of these opportunities, they must understand the cost of obtaining a business license, which includes several key elements that affect the financial and administrative aspects of the establishment process.

Dubai, as a global business and trade centre, attracts investors thanks to its advanced legislative environment and advanced infrastructure facilities. Freedom Zones in Dubai are a popular choice for companies wishing to benefit from tax concessions and flexible legislation that facilitate business operations. However, understanding the costs of obtaining a business license in these regions remains vital for any investor intending to move into this dynamic market.

Cost of a business license in Dubai Free Zone

Free zones in Dubai are among the most attractive places for companies and investors, due to the great tax advantages and facilities they provide for businesses. However, the cost of obtaining a business license in these areas varies depending on several important factors:

1. Establishment and licensing fees:

• Incorporation fees: Incorporation fees vary according to the type of company you wish to establish, whether it is a limited liability company, partnership, or sole proprietorship. These fees usually include the costs of registering the company and issuing a licence.
• Annual License Fee: After obtaining the license, the company must pay an annual fee to maintain the validity of the license.

2. Rental and space costs:

• Rental costs: Rental costs vary depending on the location within the free zone, the type of space (office, warehouse, store etc.) and the cost of a business license in the Dubai free zone.
• Maintenance and Services Costs: Rental costs may include maintenance and services such as cleaning, security and general upkeep.

3. Additional services fees:
Additional services fees: Your company may pay additional fees for services such as communications, Internet, printing, transportation, and financial services.
4. Administrative and legal costs:

• Administrative costs: These costs include employee wages, marketing costs, and other overhead expenses.
• Legal costs: Companies must pay costs to lawyers or legal consultants to facilitate legal procedures and comply with local laws.

5. Insurance and licenses:

• Insurance: The company may require obtaining various insurances, such as property insurance, employee insurance, and others.
• Additional licenses: There may be additional licenses required depending on the type of activity, such as industrial or environmental licenses.

 

Advantages of obtaining a commercial license in the Dubai Free Zone

Dubai is one of the most prominent global destinations for business and investment, and is characterized by freedom zones that provide a unique investment environment that attracts investors from various sectors. A business license in the Dubai Free Zone has several advantages that make it an attractive option for companies and individuals wishing to establish and operate their businesses.

1. Tax exemptions:
Not imposing personal and corporate income taxes: Free zones in Dubai allow you to benefit from complete exemption from taxes on profits for long periods, which reduces operating costs and increases profitability.
2. Commercial facilities:

• Ease of bureaucratic procedures: Free zones allow for quick and easy procedures for establishing and licensing companies, reducing bureaucratic procedures and the time required to start a business.
• Facilities in export and import: Free zones in Dubai provide the possibility of export and import without customs duties or at reduced expenses, which increases the effectiveness of commercial operations.

3. Advanced infrastructure:

• Modern and integrated facilities: Dubai free zones provide advanced infrastructure that includes facilities such as equipped offices, warehouses, manufacturing areas, and integrated logistics services.
• Logistics support services: Free zones provide integrated logistics services such as warehousing, distribution and transportation, which facilitates supply and distribution operations for companies.

4. Access to global markets:
Strategic location: Dubai has a strategic geographical location that facilitates access to regional and global markets, which enhances export opportunities and international expansion for companies.
5. Focus on innovation and technology:
An environment that encourages innovation: Dubai’s free zones encourage companies to innovate and use modern technology, which enhances their ability to compete in the global market.
6. Government support and flexible laws:

• Government support: The UAE government provides significant support to companies located in free zones through encouraging economic policies and financial facilities.
• Flexible laws: Dubai provides a flexible legal and regulatory environment that allows companies to adapt to rapid changes in the global market.

Steps to obtain a commercial license in the free zone

Dubai is considered one of the most prominent global destinations that attract investors thanks to its advanced investment environment and the facilities provided by the freedom zones. If you intend to start your business in Dubai by obtaining a business license in the free zone , knowing the necessary steps is an essential step to ensuring compliance and success in launching your business.

1. Market study and strategic planning:

• Market Study: Conduct a detailed market study to understand demand and competition in the UAE market, and identify potential opportunities and challenges for your project.
• Strategic Planning: Define your business goals and develop a marketing and financial strategy that supports the growth and sustainability of your business in the free zone.

2. Choose the free zone and license type:

• Choosing a free zone: Check out the options available for free zones in Dubai and choose the ones that suit your business activity and requirements.
• License type: Select the type of license appropriate for your business activity, such as industrial, commercial, service, or investment.

3. Determine the legal form of the company:
limited liability company or individual: Decide on the basis of the financial and legal responsibility of the appropriate company for your project.
4. Preparing the required documents:

• Identity and incorporation documents: The process of obtaining a license may require submitting personal identification documents and incorporation documents for the company.
• Commercial plan: Some free zones may request the submission of a commercial plan that outlines the financial and marketing objectives and strategies for your business.

5. Submitting a license application:
Fill out and submit the application: Submit an application to obtain the license in the chosen free zone and make sure to attach all required documents.
6. Obtaining approvals and licenses:
Application review and approval: After submitting the application, it will be reviewed and studied by the relevant authorities in the free zone, and you will be informed of the approval and next steps.
7. Completion of legal and financial procedures:
Signing contracts and agreements: Final operations may require signing leases and other legal agreements to start the business.
8. Receiving the license and starting work:
Receiving the license: Once you have completed the previous procedures and paid the fees, you will obtain the business license necessary to start working in the free zone.

Types of commercial licenses in the free zone

In light of the rapid economic growth and continuous development, Dubai’s free zones are an ideal destination for investors seeking to establish their businesses in a developed and regulated investment environment. Free zones offer a variety of business licenses that meet the needs of different companies, whether small, medium or large. Here is an explanation of the common types of commercial licenses in Dubai free zones :

Laws for obtaining a commercial license in the free zone

In Dubai, free zones are one of the main places that attract investors and companies thanks to investment facilities and flexible laws regulating the issuance of commercial licenses. If you are planning to start your business in one of the free zones in Dubai, it is important that you understand the laws and procedures that must be followed to obtain a business license. In this topic, we will review some basic laws that you should be aware of.

1. Legal establishment of the company:
The legal form of the company: The appropriate legal form for the company’s activity must be determined, such as a limited liability company, a sole proprietorship, or a joint-stock company.
2. Permitted activities:
Determine the company’s activity: The type of commercial activity that the company will carry out must be determined, whether it is commercial, industrial, service, or other.
3. Requirements for foreign shareholding:
Percentage of foreign ownership: Some free zones may require that there be a certain percentage of foreign ownership in the company, and in other cases they may allow 100% foreign ownership.
4. Administrative and legal procedures:
Submitting the necessary documents: The required documents must be submitted to the local authorities in the free zone, including the passport, citizenship certificate, incorporation documents and necessary attestations.
5. Financial obligations:
Fees and costs: Registration and licensing fees and any other related fees must be paid to obtain a business license.
6. Compliance with Laws and Regulations:
Compliance with Legal Controls: The company must comply with local and international laws and regulations that regulate business in Dubai.

Tax exemptions for obtaining a business license

Dubai’s free zones are one of the leading destinations for investors looking for a suitable and advanced investment environment. These areas feature many tax exemptions and financial facilities that help companies achieve success and growth. In this topic, we will explore the tax breaks that companies can benefit from when obtaining a business license in the Dubai Free Zone .

1. Exemption from income taxes:
Zero tax period: Investors in Dubai free zones enjoy complete exemption from income tax for a period of up to 50 years. This means that companies do not pay any taxes on profits made within the free zone during this period.
2. Exemption from corporate tax:
Not imposing corporate tax: Companies in free zones enjoy complete exemption from corporate tax on the profits they make within the free zone. This contributes to increasing profitability and enhancing financial growth of companies.
3. Exemption from value-added tax (VAT):
Not imposing value-added tax: Dubai free zones do not impose value-added tax on services and goods traded within the zone, which reduces costs and enhances the competitiveness of companies in the local and international market.
4. Customs and customs exemptions:
Free import and export: Dubai free zones allow import and export without imposing customs duties, which facilitates the international trade process and reduces logistical costs for companies.
5. Other exemptions:
Exemptions on registration and licensing fees: Free zones may provide an exemption from registration and licensing fees for companies, which reduces the costs of establishing and operating a business.

Our company’s role in obtaining a commercial license

In conclusion of this topic, the fact that companies obtained a commercial license in the Dubai Free Zone in cooperation with Itqan Company shows the strong attractiveness of this investment opportunity. Through tax reductions, customs exemptions and other facilities, these areas provide a favorable and encouraging environment for business. In addition, Itqan helps streamline operations and provide the necessary support for investors to achieve success and sustainability in their work.

In short, investing in a commercial license in the Dubai Free Zone in cooperation with Itqan Company is not only a financial investment, but rather an investment in a bright future that allows companies to grow and expand in a competitive global market.

Frequently asked questions about the cost of a business license